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African Journal of Hospitality, Tourism and Leisure, Volume 8 (5) - (2019) ISSN: 2223-814X
The “Fourth Industrial Revolution” (4IR) is an expression, which is now used to frame and assess the impact of emergent technologies in the 21st century. The rapidity and quantity of changes that are occurring will result in socio-economic and also political upheavals as there are likely to be increasing shifts in power dynamics, wealth acquisition, and information. This is clearly a foremost transformation in society, and especially the IT worldview demands appropriate ethical insights, actions and sanction. If we are conversant about the vicissitudes and the rate of their occurrence, society will be better placed to try to ensure that advances in technology will benefit all stakeholders. How organisations are likely to respond to the 4IR and its ethical challenges, especially human rights’, is critical. It is certain that management in for example a hotel will need to understand and consider which technologies may affect them and whether there are opportunities or threats to be faced through the 4IR. Drawing on scholarship in an extensive range of disciplines, this article examines the 4IR and how it will impact on human rights and be accommodated within existing legal frameworks pertaining to labour issues. The study has been based on an interpretivistic paradigm which is phenomenological, and in which reality is socially constructed, and thus consists of multiple realities. There is thus a hermeneutic and subjective understanding and interpretation of texts. Epistemologically considered, knowledge is viewed as subjective and relative, and many truths and ‘knowledges’ exist depending on one’s perspective and social context. Axiologically then, this conceptual literature study is valuable as it reflects human subjectivities relating to and deliberating upon the foremost features of the 4IR and the various challenges posed by both ethical and human rights perspectives.
Keywords: Technology, automation, human rights, 4IR, skills.
Introduction
The novel Frankenstein written by Mary Shelley in 1818 provides us with a lens through which
to scrutinize scientific innovation.
Victor Frankenstein is a rich Genevan who shows great promise in scientific
research. After his mother’s death, he somehow figures out how to endow
aircraft had a huge impact upon the economic and industrial archetypes which were centred
on large factories and the organizational models of production. Communication also changed
through the invention of the telegraph and the telephone (Gray, 1984; Sentryo, 2017).
The Third Industrial Revolution followed and was involved in the application of electronics and
information technology and was thus termed a Digital Revolution. Both electronics and
information technology were applied to drive the automation of production. Nuclear energy
was harnessed and electronics developed via transistors and microprocessors and of course
also the upsurge of telecommunications and computers. As information technology (IT) spread
in usage and reach, society became grounded on the Collaborative Common which is defined
as the Third Industrial Revolution era and also the zero marginal cost society (Rifkin, 2014).
The Third Industrial Revolution in many ways moulded the post Second World War world that required some economic revitalizing and a new political dispensation. Both governments and industries began to identify the influence of computers on all aspects of life. This revolution resulted in the era of high-level automation in production based on androids and programmable logic controllers (PLCs) (Sentryo, 2017). The flourishing technologies of the Third Industrial Revolution were generating new products and new industries but also energized current industries by refining products and the various manufacturing processes, heralding the renewable energy based society. They also transformed markets and remodelled companies in the markets (Rifkin, 2011; Gray, 1984). The Fourth Industrial Revolution is a radical change that transpires once IT burgeons in all industries, including the primary, secondary, and tertiary industries and it is a consequence of the horizontal development of IT. This means that 4IR is essentially a creative linking between technology and the market in every industry grounded on IT (Yun, 2017). But will South Africa be left behind again? Or will we be able to change everything by jumping on board the 4IR train? And, if we do, what could it mean for us? Here, At the edge of the world?
The current position
There is currently a weighty archetypal shift taking place, specifically the swing from the
mechanistic to the information-knowledge era, which is grounded in microelectronics and the
computer sciences. The rapid technological transformation -4IR- which is currently underway
is the driver of changes which are pertinent in all industries and in every aspect of society. It
is coalescing technological and human capabilities in an unparalleled manner through inter
alia, self-learning algorithms, self-driving motor vehicles, human–machine synergy and big-
data analytics which are all forming and moulding the impending new operational world via
their numerous effects on both the private and public sectors. The 4IR emerged through the
use of cyber-physical systems (CPSs), the Internet of Things (IOT), and services (Pfeiffer,
2017).
The current Fourth Industrial Revolution (4IR) is thus in progress and is ongoing, and began
with the development of the Internet. It is based on digitalization which allows the creation of
a virtual world which will control physical world (Hughes, 2004; Gershenfeld & Vasseur, 2014;
Prisecaru, 2016). It is characterized by the integration of technology that “… blurs the lines
between the physical, digital and biological spheres to completely uproot industries all over
the world. The extent and depth of these changes are a sign of transformations to entire
production, management and governance systems” (Schäfer, 2018). The 4IR is also widely
referred to as the Digital Revolution and it increases globalisation. The growth of technology
which is driven by the 4IR will demand the existence of 4IR capable employees with
exceptional proficiency in all industries and their various sectors.
a job posting that is suitable for them. In addition AI can also be used to assist existing
employees to access opportunities in their own hospitality enterprise and thereby grow their
career (Bose, 2019). Hotel managers that embrace an intelligent and connected ERP system,
will be in a position to have AI-driven analytics the enable users to assess the current state of
their operations and analyse the information. This will facilitate them forging the correct course
of action. AI powered digital procurement will also automate a range of processes including
inter-alia invoice processing, contract analysis and spend analysis and they will be empowered
to constantly run analytics to make forecasts and drive process improvement (Bose, 2019).
As technology changes the way employees work with machines it is increasingly likely that
some technology may well substitute them. Disruption will increasingly driving convergence
and guests will seek to be empowered more in business transactions and drive demand for
innovative answers. Hotels will need to block out disruption by obtaining or associating with
new competition or even through reconfiguring their often archaic business models. Hotels
that innovate will obtain huge upsurges in competence and their productivity levels will rise. It is also likely that leisure needs will emancipate employees from the workplace and allow them
to follow other comforts and thus, entrepreneurship will also flourish (Baweja et al., 2016;
PricewaterhouseCoopers, 2017). Hotels that do not empower their employees by improving
their skillsets will not enjoy the productivity gains or the improved customer service quality
that AI can deliver (Bose, 2019).
South African scenario
South Africa is “…standing on the precipice of a fourth industrial revolution. The question is;
how will automation infiltrate and affect the country’s major industries?” (Daniel, 2018).
The 4IR will offer opportunities to employees for learning new skills and in addition to existing
jobs, will likely create new opportunities for novel jobs that are needed to re-energise the ailing
economy. This requires a careful scrutiny of new phenomena through prevailing paradigms
which may need to shift gear to keep pace with both local and global demands. Managers are
currently somewhat restricted in their understanding of what the role of employees will be in a
society driven by technology. The global environment has characteristics which are evolving
and changing as new trends and disruptive shocks affect nations in all counties. Almost forty
years ago, it was acknowledged that the environment of business should be portrayed in two
distinct dimensions that which are the local and global (Doz, Bartlett & Prahalad, 1981).
Rapid advances in artificial intelligence, automation and also robotics, all give rise to sombre
questions concerning the likely impacts on human rights and the fact that work as we currently
know it will change. Some people may benefit while many others could benefit. Especially
workers who are specialists in data-centric environments will be required (Ndabeni-Abrahams,
2019). A big problem facing South Africa is that many leaders, are trapped in a protectionist
mentality which is prominent regarding the 4IR. The 4IR indicates that over one-third of skills
(35%) that are thought of as important in today’s labour force will have transformed radically
in the next five years and new competencies will be required in science, technology and
innovation. South Africa must prepare workforces for the 4IR or accept the consequences
(UASA, 2019). The practical implications of actions taken by employers as well as their
employees will be critically relevant if and only if both parties accept the state of things to come
in a harmonious environment which is conducive to economic growth and general societal
wellbeing.
This aligns with President Ramaphosa’s 2019 State of the Nation address in which he
acknowledged that rapid technological changes are restructuring the manner in which people
work and live (Ndabeni-Abrahams, 2019). There are predictions that by 2020, 4IR will have
their jobs. Rising inequality and income stagnation are also socially
problematic. Unequal societies tend to be more violent, have higher
incarceration rates, and have lower levels of life expectancy than their more
equal counterparts. New technologies may further concentrate benefits and
value in the hands of the already wealthy. Those who didn’t benefit from
earlier industrialisation risk being left even further behind (Harvey, 2017).
A recent survey of CEO opinion on drivers of future industry transformation pointed out that industry leaders expect digitalisation to be the major driver of future change.
The chance of job losses being lost in the mining sector is great as mining companies such as Glencore and Anglo American battle to cope with global commodity price slumps. Productivity is on a decline globally (OECD, 2014). About 32,000 workers in the sector could lose their jobs as metals prices fall due to decelerating economic growth in China, which the world's biggest metals consumer. Companies in the mining industry, which engages about 500,000 people and contributes around 7 percent to South Africa's GDP, may have scant option but to cut jobs and close struggling mines to cope (EWN, 2016). The 4IR will exacerbate this daunting scenario as additional job losses could generate labour unrest which would keep foreign investors away from South Africa.
While it is important to seek out the safest, most efficient and cost effective ways of extracting mineral resources in a sustainable manner, we should not lose sight of the employees in mines, and indeed other industries. The quality of life of employees should be enhanced rather than degraded by the advent of the 4IR, and their skills, quality of life and general health must be considered. Thus, better pay and improved opportunities for employee growth and development are desired. All stakeholders including the communities in which mines operate should benefit as a result of the 4IR. “Previous industrial revolutions destroyed jobs, but also created new jobs and industries. With the fourth, while jobs are being destroyed, there is already evidence that the established sectors are not creating enough jobs to fill the gap” (Rossouw, 2018)
Forecasts suggest that artificial intelligence, automation, and the gig economy will be highly
beneficial in the sense that people will be likely freed from numerous tedious tasks and be
capacitated to enjoy an enhanced work-life balance. Amidst the swell of transformation,
organisations need to ask questions about inter-alia, the challenges of the technologies they
use, the markets they serve, their current business models, employee empowerment in
respect of technology use, and customer needs and wants (Höller, 2014; Kloefkorn, 2016).
All these contemplations necessitate that organisations and their managers espouse a fresh
outlook, and new thinking around technology and its impact. The manner in which important
questions are tackled and related activities are conducted, will ultimately determine the level
of disruption experienced and the competitive strategic advancement or otherwise, which is
experienced by organisations. Organisations need to respond to fluctuating conditions and
grasp the various emerging prospects or South Africa will be doomed. South Africa’s
unemployment rate is about 29%, and there is vast youth unemployment, that is employable
citizens under the age of 25. The predicted unemployment rate under innovative automation
will greatly exacerbate this already dire situation (Buston, 2019).
Mines will benefit from the 4IR as there is increased performance on the production side due
to the application of high powered computing and big data and a move to what is termed
‘intelligent mining’. This will involve rea-time information on most characteristics of mining
operations and the use of data to bring about lean, factory-style production, reducing
personal lives, as one’s sense of privacy is diminished, consumption patterns change and
career growth is challenged. In addition, work and leisure time, social networks, and
relationships will all be affected in various ways (Goode, 2018; Jules, 2017; Rifkin, 1995).
Technology is clearly evolving at a far greater rate than the legal and moral frameworks that
are required to manage it effectively (Waddell, 2017). Thus ethical considerations need to be
a paramount consideration in business processes which are related to the conception,
development and also the use of new technologies (Krell, 2018).
There will be continuous risks to digital rights as new technologies interlock with each other.
In addition, the personal, social, and economic apprehensions of employees in organisations
will grow as people believe that they are incapable of surviving without the ongoing support of
their traditional employer. As entrepreneurs innovate and set up their businesses they will face
radical changes characterized by the omnipresent and mobile Internet, inexpensive, smaller
and stronger sensors; and artificial as well as machine learning (Schwab, 2017). Civil society
faces substantial moral challenges in how the organisations use their data and information. Coping with challenges will require investing in an organisation’s abilities to become more
agile and allow all stakeholders to adapt to new changes in their micro and macro
environments (Choi, 2017; Nicolaides, 2018).
The developing propagation of inter alia 3D printing, artificial intelligence and biotechnologies
and a range of other emergent technologies, necessitates that employees be prepared for
drastic changes in their workplaces and be ready to adapt in the civil the social order and also
within their organizations. The new way of doing business will be the merging of information
technology (IT) and operations technology (OT) in which business processes and office
computerization will interconnect with industrial processes and factory automation. Interacting
networks for the physical and digital components will be co-engineered to create cyber-
physical systems and deliver the basis of smart services (Jamwal, 2019). Organisations need
to carefully consider the ethical and labour law issues once these innovations begin to kick-in.
There is a need that there be strong ethical leadership emanating from civil society as well as
other stakeholders so that good governance can prevail.
Digital rights will be impacted as new technologies develop and are used by civil society and
governments alike. For example, biometric databases will increasingly expose individuals as
there will be diminished standards and guiding principles for the collection and use of sensitive
data. The digital information ecosystem is extensively bombarded with disinformation,
distraction, and misrepresentation. Cybersecurity issues will continue to grow as threats to the
civil society sector increase. Any organisation which collects personal, financial, and even
genetic data, is vulnerable to hackers (Sangokoya, 2017). Gaining from 4IR will require
expanding prudence and critical understanding of the effects of developing technologies and
the threats posed by them through knowledge sharing activities. Technical, economic, and
social factors will regulate the speed of automation. What does it mean for employees? It is
estimated that half of today’s work activities might be automated by 2055, but this could also
occur much earlier or later depending on the several factors, in addition to other economic
conditions (McKinsey Global Institute, 2017).
Automation will certainly dislodge some low-skilled workers who carry out simple, monotonous
tasks. People will need to endure operating together with technologies to produce the growth
in per capita GDP to which countries around the world aim. There are also productivity
estimates that assume that people displaced by automation will obtain other work (McKinsey
Global Institute, 2017). This is however debatable as the threat of colossal job displacement
by organisations for the application of the ethical principles in their dealings with employees
in order to triumph in sustainability efforts. They thus need to embrace a commitment to co-
existence, compromise and consultation (Rossouw, 2002). Africans should not forget their
special cultures when they become part of the corporate world and the commercial sector, but
should rather stand firmly behind what is a sound ethical philosophy and require employees
to heed their emerging concerns over 4IR (De Kock & Labuschagne, 1999).
The ethical challenges are huge and to attain a sustainable world we must face them head on
and prevail. Thus, the ethical discourse at all education levels must be intensified. Technology
must be viewed as valuable if it supports the quality of life of all the inhabitants of the planet.
Teaching ethics in Higher Education is a very important aspect of education since students
who later become managers and leaders have ethical values reinforced in their thinking
through relevant case studies and solid grounding in ethical philosophies and paradigms and
these help orientate people to the future way of life that is desired. We need to remember that no enterprise or corporation can survive without society given that enterprises are a creation
of society (Saxena & Puney, 2004).
Conclusions and recommendations
As 4IR progresses, entrepreneurial and innovative young employees will in some cases be
able to work more autonomously from home or even some remote office, and they may well
thrive in the 4IR era. But for most employees, it will be a disaster waiting to happen if
organisations do not do the right things from an ethical perspective. This is why we require
leaders and managers who are well-informed of technological developments of the 4IR and
their impacts and how employees may be affected. They will also need to have a good
understanding of the needed skills sets and knowledge of employees required to effectively
navigate what promises to be stormy seas. “Security is critical. For all of our technologies,
security is the Achilles’ heel. If we want it to be used for benefit, we have to think about security.
And we have to think about privacy, too: What data is private and what isn’t, and are we
engineering our systems so that they can support whatever privacy concerns we have?”
(Waddell, 2017).
Immoral organisations with morally unconscious leaders and managers who are totally
Machiavellian in nature and are driven by the notion that ‘then end justifies the means’ may
well embrace 4IR and negate the human worth when conducting business. Where
stakeholders and especially employees do not matter to organisations, they are likely to be
unsustainable. 4IR requires organisations to be compliant and frown upon any unethical
practices including side-lining employees in favour of a machine. Ethics in such organisations
is generally well managed and carefully monitored. The conscious ethical organisation will
make ethics a strategic pillar of its practices and be cognisant that ethics and law play a large
part in the way an organisation treats it employees (Nicolaides, 2018, 2015, 2014).
There are many ethical and legal concerns when employees can be appointed and dismissed,
how management treats them and pays them and what sort of work milieu they can anticipate.
This is why it is important to have effective codes of conduct and solid ethical frameworks. In
any event, labour needs to admit that digital technologies can and do bring the possibilities for
economic growth and increased global competitiveness. The course of the digital revolution
cannot be transformed but it can be vigorously managed (Accenture, 2018). Organisations
have fundamental roles to play in accomplishing South Africa’s shared economic future. They
should be preparing their organisations to take advantage of the benefits of digital
technologies, and additionally use technology to enhance growth beyond realizing efficiencies (Accenture, 2018).
An organization's ethical values affects it in various many ways as well as its reputation,
productivity, and the desired bottom line of the organization (Kelchner, n.d.). Ethics within an
organization can offer many paybacks. A positive ethical corporate culture increases the
morale among the employees, which increases productivity, employee retention and loyalty.
The absence of modern ethical frameworks is an enormous challenge. In efforts to protect
civic freedoms and human rights including labour rights, labour unions will assume greater
importance unions but will also be required to devote time to revamp their organizing models
to adjust to an almost nomadic labour force as people speedily change their occupations and
modus operandi. 4IR is anticipated to have unforeseen negative and positive effects for
human beings, as it goes beyond mere market functions as in the original disruptive innovation
which occurred (Park, 2017). The disruption of 4IR is about transformation which should
emanate from carefully crafted ethical business models from which organisational and human
growth is able to develop and prosper (Rossouw, 2018). There is also great indecision over
which moral framework to adopt and this underlies the difficulty and limitations to assigning
moral values to artificial systems (Al-Rodhan, 2015).
The use of digital and evolving technologies by organisations, administrations and also civil
society groups is providing ethical and other challenges, especially given that there are no
established business ethics programmes which are standard yet. Ethical issues that emerge
due to technology use offer serious risks that are not capable of being addressed by current
business ethics frameworks. If there were frameworks that were updated, organisations would
be better positioned to cope with what lies ahead of them. It is sadly the case that ethics
aspects in many organisations only get any attention when there is a major ethical lapse (Krell,
2018). The threats will serve to ensconce prevailing challenges that are associated with labour
issues, accountability, fairness, trust, human consciousness and transparency. Revolutions of
any type have been dynamic, disruptive and also damaging. 4IR offers opportunity for
organisations that are able to adjust rapidly and embrace changes that are arising. Those that
are complacent will fall by the wayside. Trust between technological developments and society
must be secured as the government and civil society work in partnership and develop
enterprises together and cooperate with universities and firms (Sangokoya, 2017). The long-
term impacts of growth in automation on employees and society in general remain to be seen
buy there is already real risk that lower-skilled workers that are already susceptible due to low
pay, hazardous work conditions, and job insecurity may possibly be impacted the most
(McGrath, 2017). Companies need to create a climate which attracts capable employees but
which also motivates and is able to retain these employees through upskilling them- after all
employees form a sizeable share of a company’s assets and strategic competitive edge. (Rossouw, 2005).
Nonetheless, a framework for ethical considerations for especially those who develop the new
technologies needs to be created in which there are practicable guidelines favouring
employees and the organisations which they serve. Only in this way can opportunities which
are associated with the likelihood of improvements in competence and productivity that will
open new markets and drive economic development be realised. Organisations and
government need to stress to universities that ethical courses are non-negotiable and need to
enlighten future managers and leaders on the premises on which the computer driven global
vision is built. Sustainability must incorporate the long-term use of the earth’s limited resources
so that graduates are empowered to make a meaningful positive difference through their
ethical behaviours and excellence within their workplaces. Work should be a place in which
managers and leaders can utilize their talents to integrate and inculcate ethical mind-sets. It is critical that organisations and governments begin to consider the obligatory legal and policy
responses from an ethical perspective in order to ensure that the future of work puts basic
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